Crowdfunding for Social Ventures

Fri, 4 Sep 2015 10:42 AM
Author: Mischon de Reya, Thomson Reuters Foundation, The Young Foundation
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Crowdfunding is a way for businesses, including startups, to raise money from the public (or, the crowd) to finance their business activities. The financial crisis resulted in many of the more traditional forms of financing for smaller businesses (such as bank lending and angel investment) drying up. Crowdfunding has grown in popularity as a means of raising finance from a more diverse pool of potential backers, such as from the local community or the wider public. As more people turn to crowdfunding to help solve their business finance challenges, we felt it would be helpful to clarify the regulations applicable to UK fundraisers and investors. Regulations applicable when raising funds from non-UK investors are not considered in this guide and should be considered separately.

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